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'Half a billion' funding black hole in 30-hours childcare

As the Childcare Bill reaches its final stages in the House of Commons today, new analysis carried out for the Labour party claims there will be a shortfall of £480m on the Government’s 30-hour plan.

Moreover, the number of three- and four-year-olds that will be eligible for the 30 hours is also down to 390,000 from the original pre-election promise of 630,000, Labour points out.

Drawing on previous data from the Pre-school Learning Alliance, House of Commons Library researchers calculated that based on Treasury predictions of inflation, there would be a gap in funding for the offer of £157m in 2017/18, when the 30 hours is introduced, rising to £480m by the end of this Parliament in 2019/20. This is equivalent to £470 per child each year, Labour claims.

Bill amendments

The Childcare Bill is expected to become law within weeks. The Bill reaches the report stage in the House of Commons today and will be read for the third time, before it is returned to the House of Lords to decide whether to accept the Bill as it stands. Previous amendments tabled by peers were rejected at the committee stage of the Bill.

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